Tax Cuts Don’t Cause Deficits

I have expounded ad nauseam on how the liberals persist in mis-characterizing actual historical events by blaming the huge federal budget deficits of the 1980s and 1990s on the Reagan tax rate cuts. Some are even so blatant as to blame the current deficit on the tiny little rebate checks that were sent out. As the debate over making the tax rate cuts permanent, and hopefully even accelerating them, becomes more serious, we will be exposed to more of these lies. These two articles, by Larry Kudlow and by Victor Canto, are good at explaining that deficits are more a function of the overall economy than tax rate cuts.

It’s always been a puzzler that liberals are always so opposed to tax rate cuts, when they actually result in much more money for the Imperial Federal Government, which they can then spend as their hearts desire. While I haven’t heard any liberal actually address this inconsistency (mainly because they persist in pretending that tax rate cuts don’t result in more revenue), my theory is one of power. If they can snatch 70% of everyone’s paycheck, they have much more power over the lives of us commoners than if they were only able to grab 28%. The fact that people will work less hard as a result is simply immaterial to the mind of a power-mad liberal. It really isn’t much different than classic communism, where all money and wealth belong to the central government and the elite rulers decide how much to allow the little people to have.

KMK

Gambling With The Home

It sounds too stupid to be true; but I’m failing to find the ironic wink to indicate that this is a joke. Who in their right mind would advise people pulling out all of their home equity to invest in the stock market? Why not take the money and go on a gambling spree to Las Vegas or Atlantic City? At least they would get some free drinks and cheap buffets; amenities most stockbrokers don’t offer as their clients lose their money.

Considering the fact that, for most people, their homes represent the major portion of their net worth, and an essential resource for their retirement years, gambling it all on stocks is insanity.

KMK

You can’t take it with you; so you might as well enjoy it while you’re here.

Talk in Capital of Easing Taxes on Dividends

Eliminating the double taxation on corporate dividends is long over-due; but let’s not count on this getting through Congress just yet. The perception is still rampant that only evil rich people receive dividends and the media make sure we never forget that tax breaks for the evil rich are themselves more sin-ful than just about anything imaginable.

KMK